What Every Government Employee Needs to Know About the Two-Pot System

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The new Two-Pot Retirement System is here, and if you’re a government employee, it could have a significant impact on your future. But do you truly understand what it means for your retirement savings?
Imagine reaching your retirement years only to realize you didn’t take the right steps to secure your financial future.
In this video, you’ll discover:
✅ What the Two-Pot System really means for your pension.
✅ How these changes could affect your retirement planning.
✅ Key insights to help you make informed financial decisions.
I’ve spoken to countless government employees who are unsure about these changes. Many worry about whether they’ll have enough money, how tax will affect their savings, and what their options really are. This video breaks it all down-without the jargon-so you can make the right moves for your financial future.
If you’re feeling uncertain or overwhelmed, you’re not alone. Watch this video now and take control of your retirement/resignation journey before it’s too late.
🔔 If you’re new to this channel, click ‘Subscribe’ to stay updated on the latest tips and financial strategies for government employees.
Disclaimers:
• Retirement Wellness SA is an Authorised Financial Services Provider (FSP 31609). This video provides information, not direct advice.
• This information is not provided by or on behalf of the Government Employee Pension Fund (GEPF). We do not act on behalf of the GEPF."
#GEPF #GEPFRetireorResign #GEPFRetire #GEPFResign #GEPFMembers #GovernmentEmployeePensionFund #ResignationPlanningGEPF #RetirementPlanningGEPF #TwoPotSystem #TwoPotImpact #GEPFTwoPotChanges #GEPFPensionReform #GEPFFinancialAdvice #TwoPotStrategyGEPF #GEPFPensionUpdate #GEPFWithdrawalImpact #GEPFSavingsPlan #GEPFFuturePlanning #GEPFBenefitChanges #TwoPotPlanningGEPF"

[@SiyathokozaKeswa-qy2mv]

Thank you for the video. It was highly informative and insightful. I believe this system was not necessarily created to aid us. It is instead a governments tactful ploy to access and misuse our hard earned monies. I resent the fact that two thirds of the monies is inaccessible until retirement. These are our hard earned savings hence we should have the liberty to access the monies at our own discretion especially upon resignation. Looking forward to more of your videos.

[@sourichmoroasui4742]

Wow Dhevan. Thank you so much for the great insights to this thony subject at this important juncture in our lives. I wish that more people could watch and subscribe. God bless you my brother.

[@mthokozisigasa4567]

Thanks a lot for eye opening of behind the scene information. Most of the formulas that they didn't share with us as members of the funds.

[@tshireletsolusithi]

Good day Dhevan thank you for allaying our anxiety and equipping us with power

[@ridwaancharles7555]

Very helpful, thank you. You just reminded me that whatever the government giveth, they taketh back,and we still get the short end of the stick...poor we'll stay!😢

[@DhevanNaicker]

@ridwaan, review the videos we have on tax savings. This will help put more money in your pocket

[@GladysLambard-ff2em]

We must take our money at the age of 65 what about if idie at age of 64

[@DhevanNaicker]

@GladysLambard-ff2em aim to only access your money when you are ready to stop working, whatever age that suits you.

[@jeremymartin1927]

Thank you. Very helpful. Makes me think. Really thought provoking.

[@Khayelihle.Nokwazi]

Wow thank you for sich an eye opening video. Government doesn't like its employers 😢. Bluffing and manipulating us like this. Why the system affects everyone and not individuals who are taking their money. This is very very sad

[@DhevanNaicker]

@khayelihle, happy to hear that this is bringing clarity to you

[@benniedewit]

Very interesting. Looking forward to more videos

[@katlegobungane6543]

Great content!

[@myplaymagaba1814]

Hi Dhevan, and thank you for the insight. However, I would like to get clarity on the resignation issue. If one resigned before the two-pot and withdrew from their benefit. Will the Two-pot system apply to them?

[@DhevanNaicker]

@myplaymagaba, if your resignation is finalized before the two pot system kicks in on 1 Sept 2024, you should not be affected by it

[@SantieBotha-r8c]

Thanks for the update

[@Mpumzar]

Thank you for the information

[@ithabisengbambo1814]

How much could be tax for withdraw of R30 000? Which is a loss

[@DhevanNaicker]

@ithabiseng, it depends on your salary and any other income sources. SARS will add everything and tax you accordingly

[@IamEnoughMRTBTTB]

Is the tax not based on the percentage that comes off your salary monthly?

[@DhevanNaicker]

@IamEnoughMRTBTTB SARS will add all income sources and tax you accordingly

[@jacvanderspuy5618]

Interesting and well presented video. Just a quick question. To what change in the "formula" are you referring when you said it changed in November 2023? As far as I can see it still is 6,72% x years of service for the gratuity and 1/55 x years of service final salary??

[@DhevanNaicker]

@jac, the change happened end Oct 2022 and became effective from 1 Nov 2022

[@FielaAbrahams]

Thanks for the video

[@ebenlabuschagne5844]

Thank you for the great content Dhevan. So what will happen to the remaining funds should one die? Will the remaining balance of the funds be paid to one's beneficiaries? Or will the fund keep it if the beneficiaries aren't dependents of the employee? Similar to how the government pension of pre 1990's operated? Thank you in advance

[@DhevanNaicker]

@eben, at present GEPF have provided guidelines of how they will implement 2 pot. However we will only know how this works once it is in place.

[@bonganemotaung9760]

Is it okay if i decide to decline and not take anything? Does that mean i am safe?

[@DhevanNaicker]

@bongane, this is a wise decision and will help you save on tax. However, if a significant number of members access funds, this would impact the liquidity of the fund which could result in the fund adjusting values

[@MargaretFivaz]

Thanks for the video.

[@DhevanNaicker]

@Margaret, happy it helps

[@mervinmaxes409]

Brilliant thanks

[@thembinesemare5021]

What are the implications of exiting before the implementation of the 2 port system. Yet turning 60 end of the year

[@DhevanNaicker]

@thembi, it’s all covered here: www.retirevsresign.co.za/

[@lindavandermerwe1237]

If you already reired, and left your money at the goverment to get a monthly pension. How do you protect your retirement money.

[@DhevanNaicker]

@Linda, in this case you would need to ensure that GEPF investments are returning attractive returns, much higher than the pension increase you would receive annually

[@CharmaineDeAlmeida]

I am retiring in 4 years time I don't want 2 withdraw anything coming September, do u think it's a good idea leaving my money at my workplace and receiving a monthly payment do u give private consultation

[@DhevanNaicker]

@user-mg3pp7bz1e it’s not compulsory to withdraw any funds once 2 pot takes effect. Are you a government employee?

[@jonathanfiller4296]

Hi ,my name is Jonathan and working as psa member in the police my service in 20 years now ,what is your advice time about making a decision on this case of the three pot system .Must I take my money or not

[@DhevanNaicker]

@jonathan, do you urgently need access to the funds now?

[@thembimakhubela956]

My understanding do u mean we need to withdraw as the formula might change n we will loose more?

[@DhevanNaicker]

@thembi, this entirely based on your personal circumstances

[@bensenzo]

​@@DhevanNaickerthat doesn't answer the question 😅

[@eshararamperthab7619]

Hi. I served edn dept. 34yrs. Please advise me on best implications of new 2pot.kind reg.

[@DhevanNaicker]

@eshara, email [e-mail] to enquire on a free Retire vs Resign Masterclass that we host. It covers the two pot system and its potential impact on you.

[@eshararamperthab7619]

@@DhevanNaicker .u a blessing 🙌

[@nonhlanhlanhlapo7537]

I want to resign before September, what are the implications if I resign after September 2024?

[@DhevanNaicker]

@nonhlanhlanhlapo, it would depend on how GEPF actually implements the 2 pot system and if there is a change to their formula

[@jonathanfiller4296]

Hi ,my name is Jonathan and working as psa member in the police my service in 20 years now ,what is your advice time about making a decision on this case of the three pot system .Must I take my money or not and how much will be taxed

[@DhevanNaicker]

@jonathan, it depends on your personal circumstances. Lots has to be considered before you leave

[@bensenzo]

​@@DhevanNaickerhe didn't say anything about leaving 🙄

[@AshleyPillay-zd2uz]

HI,What are our legal rights to secure our own money to stop this 2pot system?

[@DhevanNaicker]

@Ashley, the two pot system is implemented by government and will affect all retirement funds, not just GEPF

[@IamEnoughMRTBTTB]

It seems like it doesn't matter whether you withdraw or not each of us is affected by the other. From the information you shared. Depending on the number of people who withdraw. Since the formula will be changed and there'll be a loss for everyone. I would like to withdraw only the 1st R30k. I have 26 years of service and Im 12 years to retirement. Wouldn't the effect be minimum?

[@DhevanNaicker]

@IamEnough, the R30k will be added to your salary and taxed accordingly

[@sibusisonkosi3469]

I've been out of GPEF since 2013 and I've stopped contributing so can I withdraw all my contribution from September?

[@DhevanNaicker]

@sibusiso, you should be able to do this. Best reach out to the pension office to confirm

[@lee-royvers7354]

Hi Dhevan Thanks for the great video! Can a member resign from GEPF and still remain a member of GEMS?

[@DhevanNaicker]

@Lee-roy, happy to hear that this has been helpful for you. Members cannot belong to GEMS on resignation. However there are over 100 medical aid options available in the private so you can get something affordable and comprehensive

[@peeps977]

What happen to the people who worked on the railways and then all their benifis where lost from pension to medical aid. I do not see how Government people are going to live after Sept 2024. Municipal where SALGA also wants to put their fingers on pensions pots it all is a plan

[@arthurlukhan216]

How would the 2 pot system affect current employees who have RETIRED .

[@DhevanNaicker]

@Arthur, the annual pension increases could be less than inflation which could significantly affect their cash flow

[@No2HeartStoppingClotShots]

@@DhevanNaicker hi Dhevan please do a video about pension increases could be less than inflation....I dont understand how that works. thanks

[@DhevanNaicker]

@thandomajola-qz2ow Will do 👍

[@No2HeartStoppingClotShots]

@@DhevanNaicker

[@LindaPeace-xi9zo]

Personally how do you advise on this situation if it was you?take or live it pls advise 🙏

[@DhevanNaicker]

@linda, it depends on your specific situation, age, years of service and other factors. When were you planning on leaving?

[@FlorenceSeitshiro]

I am 62 years now if I resign after 1sep 24 wil I get all my pension I.e retirement, savings and vested pot at ba ones ?

[@DhevanNaicker]

@florence, in theory that should be the case. The problem is your resignation value might be lower after GEPF adjusts their formulas.

[@benjaminrobertson254]

So when you resign while in the Two pot system, will you get one payout still?

[@DhevanNaicker]

@benjamin, according to GEPF, a portion of your benefit may be held in the ‘retirement pot’ and only released when you get to retirement age as defined by the fund rules

[@AnnyBodlo]

Why is this compulsory? It should only apply to those in need of the money. I strongly believe that we were supposed to be consulted. I don't see the exact meaning of Batho Pele Principles whereby Consultation is one of the principles.

[@DhevanNaicker]

@anny, the two pot system will apply to all pension, provident, preservation and retirement annuity funds. GEPF is a defined benefit fund so the application of two pot would be different to other funds

[@bensenzo]

Literally no one said it's compulsory. No one is forced to withdraw

[@DianneSmith-fv1vi]

How does this impact a retired pensioner

[@DhevanNaicker]

@diannesmith, pensioner are already affected because the annual increases are much lower than the returns the fund makes. It is possible that increases could be lower going forward.

[@cdandanimelover3674]

Make sure you get all, (including private companies) information regarding your invested pension money before you take any action like resignation. There's a lot that's still crying due to actions without proper information.

[@DhevanNaicker]

@cdandanimallover3674, you’re right… many members don’t get good quality advice. This channel is dedicated to helping members make informed decisions.

[@maureenngwenya4282]

If i apply for retirement earlier than 60 years now in June, will it also be affected by the GEPF 2 POT SYSTEM?

[@DhevanNaicker]

@maureen, your retirement values would be lower because they are projected to 60 at present. As a starting point, reach out to GEPF and confirm your exact values should you leave in June. You can then determine if this is feasible for you

[@siphiwegumede4454]

There's a 4% penalty per year

[@DhevanNaicker]

@siphiwegumede4454 you can reach out to the pension fund and request a statement to confirm your exact amounts

[@garyolckers3506]

Hi Dhevan. I have my funds in a RA and in a Preservation fund. Do i have participate in this system?. If the 10% withdrawal is more than 30K is the 30k the maximum you can take per annum

[@DhevanNaicker]

@Gary, you can elect not to withdraw any funds. Why do you have both an RA and Preservation Fund? You’re doubling your costs

[@garyolckers3506]

@DhevanNaicker I also had the RA and when my contract ended I put my provident funds into a preservation fund. So if I don't withdraw do they still split the fund into a 2 pot fund. Or only if I request it.

[@DhevanNaicker]

@garyolckers3506 The two pot system will apply to all retirement funds

[@LeeDuPreez-d7w]

Why is the government pension fund keep a large portion of your hard earned pension fund money when you resign and keep it until you reach retirement age or die. What is happening to the money left behind by government employees.

[@DhevanNaicker]

@user-kx5qd3rg1g, ultimately any surplus funds left over will stay in the pension fund.

[@MoegamatFick]

I want all my money at once when I'm done working

[@keithprice7931]

I wonder if it will ever happen tho...always hiccups or mis comunication..4 months to go..enough time i hope..

[@DhevanNaicker]

@Keith, I hear you… it’s been pending for a long time. The problem is what if you don’t plan for it and it actually does take effect?

[@mbusozondi655]

I think resignation is the only way out

[@DhevanNaicker]

@mbuso, what can you do now to ensure your resignation is secure?

[@mbusozondi655]

@@DhevanNaicker I do not know to be honest. I had hoped that I will resign before September take whatever income tax hit, they inflict to me and move on. Unless if they allow me to divert it to another registered funds where I will have access withdraw in the future.

[@DhevanNaicker]

@mbusozondi655 you will find more clarity here: www.retirevsresign.co.za/

[@mbusozondi655]

@@DhevanNaicker thank you so much, I will go through it

[@djbekzin1508]

If my resignation date is 31 august 2024.. am i safe to get my retirement?

[@SevernSAPS]

so its better for me to resign and get my pension

[@DhevanNaicker]

@severn, you need to consider all the elements so that you can determine whether to leave before or not

[@Leendow]

Then keep the money where bank shares?

[@DhevanNaicker]

@Leendow bank investments attract interest and this is taxable. Best to seek proper financial advice so you can structure this in a way that grow wealth with minimum tax implications

[@frederickhefer3442]

OMG This is a disaster of course a large number of ppl will take money out of the pool. So why does it have to affect you who has decided to not take anything out?

[@DhevanNaicker]

@frederick, it could impact all members because PIC will have to sell shares to complete these payments. If the markets are down at the time and there are mass exits, it could result in GEPF changing their formula

[@AshleyPillay-zd2uz]

What are our legal rights to stop this process seeing that this is our money,we have worked for it and still are working for so we can enjoy our own money one day.

[@DhevanNaicker]

@Ashley, the two pot system is being implemented by government and will affect all retirement funds, including GEPF.

[@vernonrich7202]

I got a package deal from my company in 2016 and only took 1/6 of my package. Can i still take the other 1/6 now from my annuity fund to make the withdrawal 1/3

[@DhevanNaicker]

@vernon, SARS links everything so you need to consult with your advisor to avoid losing money to tax

[@wjg203]

Goverment and Fund Managers is simply seeing a gap to eat our savings in the form of fees and taxes. Pensionfunds shouldn't have fees to protect the people and the economy!!!

[@DhevanNaicker]

@wjg, if companies don’t charge fees, they will close. What would happen to your money? When the advice is right, the value you receive will cover the fees and grow your wealth.

[@wjg203]

@@DhevanNaicker . Why don't fund managers invest pension funds in index funds like the S&P500 which has low cost and consistent returns and there is hardly anything to manage?

[@DhevanNaicker]

@wjg203 This is something you can request from your financial advisor/planner

[@siziwethela6705]

👍

[@stormcloud5915]

Hello Derv can I transfer my money now to the approved fund ? I will be retiring in December.

[@DhevanNaicker]

@stormcloud, are you retiring or resigning?

[@desireephillips3834]

Retiring in December 2024. How will the two pot system impact me

[@DhevanNaicker]

@Desiree, just to confirm… will you be retiring or resigning?

[@manojkumarramdutt9752]

YO...this is gonna give a headache....this is ANC strategy to steal more....shamelessly too

[@AshleyPillay-zd2uz]

HI,What are our legal rights to secure our own money to stop this 2pot system?

[@AshleyPillay-zd2uz]

HI,What are our legal rights to secure our own money to stop this 2pot system?

[@DhevanNaicker]

@Ashley, the two pot system is implemented by government and will affect all retirement funds, not just GEPF

[@wjg203]

Seem like government has a longer term plan in place which is more tax related. They struggle to recover more tax from peoples pension savings. More than likely they also do this to ensure they still recover taxes from people emigrating to other countries. The bigger problem here is that to be have enough retirement savings you need your Net Salary x 15. BUT now with this new system it create a problem but splitting it into different pots with different terms and conditions. Example if you earn 240000 after tax and deductions. 240000 x 15 years = 3 600 000. if you split this as per new System, Pot 1(1third = 1 200 000) and Pot 2 (2 400 000). Pot 1 - I'm not sure how much of this you will receive after all the fees, taxes and deductions but this money might seem a lot but most people will settle debt and spend it. Then they have to rely on the monthly income earned from POT 2 only which wont be much. My point is that this changes is not in favor of people with pensions. When people retire they need to be in full control of their hard earned savings but also have access to the Capital if needed. Some would like to invest. Some might want to start a business, Some might want to build a family home.